Hey there! I have a chance to buy a significant amount of property in Alaska (fishing lodge) that goes hand in hand with my fishing guide business. The numbers work really well; however, this is my first "big" swing at a real estate play. This property will cash flow nicely, I am just not sure how to get something like this done. (list is 1.6 mil)
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
Hey @David Lisi, so you have an existing guide business. What about looking at an SBA loan to expand that business?
I would for sure try the owner financing first, but this seems like a perfect opportunity to leverage the SBA loan program as you are already operating, what I assume is, a successful guide business.
If you get the lodge, can you consolidate locations with your guide business? If you show you can increase revenue and lower costs of operation, that makes thing work much better for the 1.6m purchase price.
Is the lodge currently operating? Have you looked at their books yet? What kind of work does it need to improve it?
It is a 100% turnkey opportunity. Fully furnished (even has all of the linens). I do have access to their historical P&Ls and all the pertinent information. Our guide business is very successful and this would be an excellent opportunity to vertically integrate into our existing business. This is in an area with a very small market (a.k.a. no long term housing and shrinking short term rental opportunities). I would hate for this lodge to be purchased for someone's homestead and further shrink the availability of short term/long term properties available in the area.
Hey @David Lisi, so you have an existing guide business. What about looking at an SBA loan to expand that business?
I would for sure try the owner financing first, but this seems like a perfect opportunity to leverage the SBA loan program as you are already operating, what I assume is, a successful guide business.
If you get the lodge, can you consolidate locations with your guide business? If you show you can increase revenue and lower costs of operation, that makes thing work much better for the 1.6m purchase price.
Is the lodge currently operating? Have you looked at their books yet? What kind of work does it need to improve it?
Lots of cool opportunities here IMHO!
It is a 100% turnkey opportunity. Fully furnished (even has all of the linens). I do have access to their historical P&Ls and all the pertinent information. Our guide business is very successful and this would be an excellent opportunity to vertically integrate into our existing business. This is in an area with a very small market (a.k.a. no long term housing and shrinking short term rental opportunities). I would hate for this lodge to be purchased for someone's homestead and further shrink the availability of short term/long term properties available in the area.
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@David Lisi Here are questions a commercial lender is sure to ask or you should ask when considering purchase:
How long is the sport fishing season in Anchorage? How many rooms in this lodge/hotel? Have the current owners been able to a stage 60% occupancy? How long has the property been listed?( just because it lists at 1.6M does not mean you can t negotiate it for less) Why is current owner selling? Is their substantial maintenance that has been deferred, and it’s costs? What are the taxes on the property? Insurance costs?
Are there areas within building to serve breakfast and dinner? Is there a large kitchen on premises?
Hey there! I have a chance to buy a significant amount of property in Alaska (fishing lodge) that goes hand in hand with my fishing guide business. The numbers work really well; however, this is my first "big" swing at a real estate play. This property will cash flow nicely, I am just not sure how to get something like this done. (list is 1.6 mil)
Hi David, assuming you’re operating out of copper landing - now that the highway bypass is funded, how does that affect the property you’re looking at?
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
Thanks for the info @David Lisi. I think this is a perfect scenario for a SBA expansion loan.
Check out https://www.sba.gov/blog/finan... to get started. I have to say that the SBA loan process can take forever. There are other ways to get business financing on something like this.
Seeing as it is an existing operating business ready to rock and roll will open up some options from other lenders.
There is also a proposed expansion of SBA lenders so that could speed things along.
Don't let FOMO get to you. Do your due diligence and make sure this works for you and will make sense. I hear your concern about the local inventory so keep that on the back burner and don't let it cloud your judgement. :)
Personally this seems like a great idea to me as long as it can make you money, expand your business and keep you living and working in an awesome area!
Hey there! I have a chance to buy a significant amount of property in Alaska (fishing lodge) that goes hand in hand with my fishing guide business. The numbers work really well; however, this is my first "big" swing at a real estate play. This property will cash flow nicely, I am just not sure how to get something like this done. (list is 1.6 mil)
Hi David, assuming you’re operating out of copper landing - now that the highway bypass is funded, how does that affect the property you’re looking at?
I think that it will only increase property values and further make Cooper Landing even more desirable to visit/stay